Rates heading towards season’s high on the cotton market on Monday on tight supply of quality lint, dealers said. Just in a single day rally, the official spot rate gained Rs 100 to Rs 5,650 dealers said. In the Punjab, seed-cotton prices were at Rs 3000 and Rs 3200, they said. In the ready business, around 11000 bales of cotton changed hands between Rs 5100 and Rs 5950, they said. Some brokers said that demand is surging with the passage of time as country is facing shortage of nearly 5 million bales of cotton.
India has same problem, so that our local spinners not able to purchase cotton at their psychological levels, they said. Cotton analyst, Naseem Usman said that the growers also failed to get any benefit from the early sowing because of cotton belt just a few weeks ago. He said that the ginners have very little number of unsold stocks of fine cotton, which may cause further flare-up in the prices. It is before time to predict about the new record highs, but it looks some difficult to say that rate can touch easily 18th August 2013 record high at Rs 7000.
The ginners showing less interest in fresh selling of cotton because they were observing rates were soaring with passing of every day, other analysts said. The following deals reported: 1000 bales of cotton from Rohri at Rs 5100, 200 bales from Ghotki at Rs 5950, 3000 bales from Khanpur at Rs 5650, 2000 bales from Khanpur at Rs 5700-5750, 300 bales from Multan at Rs 5800, 400 bales from Hasilpur at Rs 5800 and 4000 bales from Rahim Yar Khan at Rs 5900, they said.